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Reserve Bank of India's monetary policy review

Repo rate is referred to the rate used by the RBI to lend money to commercial banks whenever there arises a shortage in funds. The repo rate is also used to control inflation in the country, where the RBI increases the rate to lower inflation.

However, Ravindra Dholakia, an external member of the panel, favored the lowering of rates by at least 25 basis points.

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The central bank's policy statement

RBI stated: "The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of 2% while supporting growth."

Lending Rates

Bank home loan rates unlikely to be lowered

As RBI rates remain unchanged, banks aren't expected to lower their loan rates. So, it is best for borrowers to opt for festive loan offers.

The average home loan interest rate is 8.5% after several banks reduced the MCLR (marginal cost of funds based lending rate) last month.

However, some say banks may lower lending rates to increase the number of home loan takers.

Economic Activity

GVA growth decelerated in first quarter: RBI

RBI said since the last MPC meeting in August, global economic activity has strengthened. It added the recent hurricanes could impact the activity.